S.F. 2095 Section 1. NEW SECTION . 13.6A Special assistant —— human 1 trafficking and related offenses —— employment of unauthorized 2 aliens. 3 The attorney general shall appoint a special assistant 4 attorney general for claims who shall, under the direction of 5 the attorney general, investigate and prosecute all claims 6 relating to the crime of human trafficking and related offenses 7 pursuant to sections 710A.2, 710A.2A, 710A.2B, 710A.2C, 8 710A.2D, and 710A.2F and the employment of unauthorized aliens 9 pursuant to section 91F.2. 10 Sec. 2. NEW SECTION . 73A.22 State assistance restrictions 11 —— persons employing unauthorized aliens. 12 1. a. A state department, institution, or agency, or any 13 board member, commissioner, director, manager, or other person 14 connected with any such department, institution, or agency, 15 shall not award a contract or provide developmental assistance 16 to an employer as defined in section 91F.1 in which the 17 employer or corporate officer of the employer has been found in 18 violation of section 91F.2 within the past five years. 19 b. For purposes of this section, “developmental 20 assistance” means any form of public assistance, including 21 tax expenditures, made for the purpose of stimulating the 22 economic development of a corporation, industry, geographic 23 jurisdiction, or any other sector of the state’s economy, 24 including but not limited to industrial development bonds, 25 training grants, loans, loan guarantees, enterprise zones, 26 empowerment zones, tax increment financing, fee waivers, 27 land price subsidies, infrastructure constructed or improved 28 for the benefit of a single business or defined group of 29 businesses at the time it is built or improved, matching 30 funds, tax abatements, tax credits and tax discounts of 31 every kind, including corporate, franchise, personal income, 32 sales and use, raw materials, real property, job creation, 33 individual investment, excise, utility, inventory, accelerated 34 depreciation, and research and development tax credits and 35 -1- LSB 5454XS (7) 87 ko/rj 1/ 14

S.F. 2095 discounts. 1 2. Any contract or developmental assistance awarded shall 2 provide that if, during the effective period of the contract or 3 developmental assistance, the vendor, contractor, subcontractor 4 or developmental assistance recipient violates the provisions 5 of section 91F.2, the contract or developmental assistance 6 shall be terminated. 7 3. A state department, institution, or agency may enforce 8 its rights under this section by instituting a civil action in 9 district court in this state. In addition, a state department, 10 institution, or agency shall not award a contract or provide 11 developmental assistance to any person that violates this 12 section for a period of five years after the date of the 13 violation. 14 Sec. 3. NEW SECTION . 91F.1 Definitions. 15 As used in this chapter: 16 1. “Commissioner” means the labor commissioner. 17 2. “Employee” means a natural person who is employed in this 18 state for wages paid on an hourly basis by an employer. 19 3. “Employer” means a person, as defined in section 4.1, 20 who in this state employs for wages, paid on an hourly basis, 21 one or more natural persons. An employer does not include 22 a client, patient, customer, or other person who obtains 23 professional services from a licensed person who provides 24 the services on a fee service basis or as an independent 25 contractor, or the state, or an agency or governmental 26 subdivision of the state. 27 4. “Unauthorized alien” means a person who is not a citizen 28 or legal resident and who has not been lawfully admitted to the 29 United States for permanent residence or who is not authorized 30 to work in the United States. 31 Sec. 4. NEW SECTION . 91F.2 Unauthorized aliens —— employer 32 prohibition. 33 An employer shall not knowingly employ as an employee an 34 unauthorized alien. For purposes of this section, “knowingly 35 -2- LSB 5454XS (7) 87 ko/rj 2/ 14

S.F. 2095 employ as an employee an unauthorized alien” includes cases in 1 which an employer actually knows a person is an unauthorized 2 alien and cases in which any person exercising reasonable care 3 should know from facts and circumstances that a person is an 4 unauthorized alien. 5 Sec. 5. NEW SECTION . 91F.3 Civil penalties. 6 1. An employer who violates section 91F.2 is subject to a 7 civil penalty of up to one thousand dollars. 8 2. A corporate officer of an employer who, through repeated 9 violation of section 91F.2, demonstrates a pattern of employing 10 unauthorized aliens commits a serious misdemeanor. 11 3. An employer who, through repeated violation of section 12 91F.2, demonstrates a pattern of employing unauthorized aliens 13 may be ordered to pay punitive damages. 14 Sec. 6. NEW SECTION . 91F.4 Duties and authority of the 15 commissioner —— enforcement by attorney general. 16 1. The commissioner shall adopt rules to administer and 17 enforce this chapter. 18 2. In order to carry out the purposes of this chapter, 19 the commissioner or the commissioner’s representative, upon 20 presenting appropriate credentials to an employer’s owner, 21 operator, or agent in charge, may do any of the following: 22 a. Inspect employment records relating to the employees of 23 the employer. 24 b. Interview an employer, owner, operator, agent, or 25 employee, during working hours or at other reasonable times. 26 3. If the commissioner has reason to believe that an 27 employer may be in violation of this chapter, the commissioner 28 shall notify the attorney general, and provide the attorney 29 general with any supporting information, for prosecution of the 30 violation by the attorney general. 31 Sec. 7. NEW SECTION . 91F.5 Prohibitions relating to certain 32 actions by employees —— penalty —— civil remedy. 33 1. An employer shall not discharge an employee or take 34 or fail to take action regarding an employee’s appointment 35 -3- LSB 5454XS (7) 87 ko/rj 3/ 14

S.F. 2095 or proposed appointment or promotion or proposed promotion, 1 or regarding any advantage of an employee as a reprisal 2 for a failure by the employee to inform the employer that 3 the employee made a disclosure of information to any law 4 enforcement agency if the employee reasonably believes the 5 information evidences a violation of section 91F.2, 710A.2, 6 710A.2A, 710A.2B, 710A.2C, or 710A.2D. 7 2. Subsection 1 does not apply if the disclosure of the 8 information is prohibited by statute. 9 3. An employer who violates subsection 1 commits a simple 10 misdemeanor. 11 4. Subsection 1 may be enforced through a civil action. 12 a. An employer who violates subsection 1 is liable to 13 an aggrieved employee for affirmative relief, including 14 reinstatement, with or without back pay, or any other equitable 15 relief the court deems appropriate, including attorney fees and 16 costs. 17 b. If an employer commits, is committing, or proposes to 18 commit an act in violation of subsection 1, an injunction may 19 be granted through an action in district court to prohibit the 20 person from continuing such acts. The action for injunctive 21 relief may be brought by an aggrieved employee or the attorney 22 general. 23 Sec. 8. Section 710A.1, Code 2018, is amended to read as 24 follows: 25 710A.1 Definitions. 26 As used in this chapter : 27 1. “Commercial sexual activity” means any sex act or 28 sexually explicit performance for which anything of value is 29 given, promised to, or received by any person and includes, 30 but is not limited to, prostitution, participation in the 31 production of pornography, and performance in strip clubs. 32 2. “Corporation” means the same as defined in section 33 490.140. 34 2. 3. “Debt bondage” means the status or condition of a 35 -4- LSB 5454XS (7) 87 ko/rj 4/ 14

S.F. 2095 debtor arising from a pledge of the debtor’s personal services 1 or a person under the control of a debtor’s personal services 2 as a security for debt if the reasonable value of such services 3 is not applied toward the liquidation of the debt or the length 4 and nature of those services are not respectively limited and 5 defined. 6 3. 4. “Forced labor or services” means labor or services 7 that are performed or provided by another person and that are 8 obtained or maintained through any of the following: 9 a. Causing or threatening to cause serious physical injury 10 to any person. 11 b. Physically restraining or threatening to physically 12 restrain another person. 13 c. Abusing or threatening to abuse the law or legal process. 14 d. Knowingly destroying, concealing, removing, 15 confiscating, or possessing any actual or purported passport or 16 other immigration document, or any other actual or purported 17 government identification document, of another person. 18 5. “Foreign corporation” means the same as defined in 19 section 490.140. 20 4. 6. a. “Human trafficking” means participating in a 21 venture to recruit, harbor, transport, supply provisions, or 22 obtain a person for any of the following purposes: 23 (1) Forced labor or service that results in involuntary 24 servitude, peonage, debt bondage, or slavery. 25 (2) Commercial sexual activity through the use of force, 26 fraud, or coercion, except that if the trafficked person is 27 under the age of eighteen, the commercial sexual activity need 28 not involve force, fraud, or coercion. 29 b. “Human trafficking” also means knowingly purchasing or 30 attempting to purchase services involving commercial sexual 31 activity from a victim or another person engaged in human 32 trafficking. 33 5. 7. “Involuntary servitude” means a condition of 34 servitude induced by means of any scheme, plan, or pattern 35 -5- LSB 5454XS (7) 87 ko/rj 5/ 14

S.F. 2095 intended to cause a person to believe that if the person did 1 not enter into or continue in such condition, that person or 2 another person would suffer serious harm or physical restraint 3 or the threatened abuse of legal process. 4 6. 8. “Labor” means work of economic or financial value. 5 7. 9. “Maintain” means, in relation to labor and services, 6 to secure continued performance thereof, regardless of any 7 initial agreement on the part of the victim to perform such 8 type of services. 9 10. “Minor” means a person under the age of eighteen years. 10 8. 11. “Obtain” means, in relation to labor or services, 11 to secure performance thereof. 12 9. 12. “Peonage” means a status or condition of involuntary 13 servitude based upon real or alleged indebtedness. 14 10. 13. “Services” means an ongoing relationship between a 15 person and the actor in which the person performs activities 16 under the supervision of or for the benefit of the actor, 17 including commercial sexual activity and sexually explicit 18 performances. 19 11. 14. “Sexually explicit performance” means a live or 20 public act or show intended to arouse or satisfy the sexual 21 desires or appeal to the prurient interest of patrons. 22 12. 15. “Venture” means any group of two or more persons 23 associated in fact, whether or not a legal entity. 24 13. 16. “Victim” means a person subjected to human 25 trafficking. 26 Sec. 9. NEW SECTION . 710A.2B Forced labor and services. 27 1. A person who knowingly subjects, attempts to subject, 28 or engages in a conspiracy to subject another person to forced 29 labor or services by causing or threatening to cause serious 30 physical injury to that other person is guilty of a class “B” 31 felony, except that if that other person is a minor, a person 32 who violates this subsection is guilty of a class “A” felony. 33 2. A person who knowingly subjects, attempts to subject, 34 or engages in a conspiracy to subject another person to forced 35 -6- LSB 5454XS (7) 87 ko/rj 6/ 14

S.F. 2095 labor or services by physically restraining or threatening to 1 physically restrain that other person is guilty of a class “C” 2 felony, except that if that other person is a minor, a person 3 who violates this subsection is guilty of a class “B” felony. 4 3. A person who knowingly subjects, attempts to subject, 5 or engages in a conspiracy to subject another person to forced 6 labor or services by abusing or threatening to abuse the law 7 or legal process is guilty of a class “D” felony, except that 8 if that other person is a minor, a person who violates this 9 subsection is guilty of a class “C” felony. 10 4. A person who knowingly subjects, attempts to subject, 11 or engages in a conspiracy to subject another person to 12 forced labor or services by knowingly destroying, concealing, 13 removing, confiscating, or possessing any actual or purported 14 passport or other immigration document, or any other actual or 15 purported government identification document, of that other 16 person is guilty of a class “D” felony, except that if that 17 other person is a minor, a person who violates this subsection 18 is guilty of a class “C” felony. 19 Sec. 10. NEW SECTION . 710A.2C Human trafficking —— forced 20 labor and services. 21 1. A person shall not knowingly recruit, entice, harbor, 22 transport, provide, or obtain by any means, or attempt to 23 recruit, entice, harbor, transport, provide, or obtain by any 24 means, another person, with the intent that the other person be 25 subjected to forced labor or services. 26 2. A person shall not knowingly benefit, financially or by 27 receiving anything of value, from participation in a venture 28 that involves a violation of this section. 29 3. A person who violates this section is guilty of a class 30 “B” felony, except that if the other person is a minor, a 31 person who violates this section is guilty of a class “A” 32 felony. 33 Sec. 11. NEW SECTION . 710A.2D Human trafficking —— sexual 34 exploitation of a minor. 35 -7- LSB 5454XS (7) 87 ko/rj 7/ 14

S.F. 2095 1. A person shall not knowingly recruit, entice, harbor, 1 transport, provide, or obtain by any means, or attempt to 2 recruit, entice, harbor, transport, provide, or obtain by any 3 means, a minor, with the intent that the minor be subjected to 4 sexual exploitation in violation of section 728.12. 5 2. A person shall not knowingly benefit, financially or by 6 receiving anything of value, from participation in a venture 7 that involves a violation of section 728.12. 8 3. A person who violates this section is guilty of a class 9 “A” felony. 10 Sec. 12. NEW SECTION . 710A.2E Sentencing enhancements. 11 1. If a violation of section 710A.2B or 710A.2C results 12 in the death of the person or if the person is kidnapped in 13 violation of section 710.2 or 710.3, the defendant is guilty 14 of a class “A” felony. 15 2. In sentencing a person for a violation of section 16 710A.2B, 710A.2C, or 710A.2D, the court shall sentence the 17 defendant to an additional term of confinement of ten years in 18 cases in which the victim was maintained or held for a period 19 greater than one hundred eighty days or if the offense involved 20 more than ten victims. 21 Sec. 13. NEW SECTION . 710A.2F Corporate liability. 22 If a corporation or foreign corporation is convicted of an 23 offense pursuant to section 710A.2, 710A.2A, 710A.2B, 710A.2C, 24 or 710A.2D, in addition to any other penalties provided in this 25 chapter, the court shall, where appropriate, do any of the 26 following: 27 1. Order the corporation’s dissolution or reorganization. 28 2. Order the suspension or revocation of any license, 29 permit, or prior approval granted by a state agency. 30 3. Order the surrender of the corporation’s organizational 31 authority if organized under state law or revocation of a 32 foreign corporation’s authority to conduct business in this 33 state. 34 Sec. 14. Section 710A.4, Code 2018, is amended to read as 35 -8- LSB 5454XS (7) 87 ko/rj 8/ 14

S.F. 2095 follows: 1 710A.4 Restitution. 2 The gross income of the defendant or the value of labor or 3 services performed by the victim to the defendant shall be 4 considered when determining the amount of restitution. In 5 addition to any fine or penalty imposed under this chapter, 6 the court shall order a defendant convicted of a violation 7 of this chapter to make restitution for damages resulting 8 directly from the violation, to the victim, pursuant to chapter 9 910, and shall include an additional fine of the greater of 10 either the gross income or value of the victim’s labor or 11 services or the value of the victim’s wages of not less than 12 the federal minimum wage under the federal Fair Labors Standard 13 Act or under the state’s minimum wage under section 91D.1, as 14 applicable. 15 Sec. 15. Section 915.51, Code 2018, is amended to read as 16 follows: 17 915.51 General rights of human trafficking victims. 18 Victims of human trafficking, as defined in section 710A.1 , 19 shall have the same rights as other victims of a crime, 20 including the right to receive victim compensation pursuant to 21 section 915.84 , regardless of their immigration status. 22 1. In addition to other victim rights provided in this 23 chapter, including the right to receive victim compensation 24 pursuant to section 915.84 and the right to exert victim 25 counseling privileges pursuant to section 915.20A, victims of a 26 crime described in section 710A.2, 710A.2A, 710A.2B, 710A.2C, 27 or 710A.2D shall have the following rights without regard to 28 their immigration status: 29 a. The right to receive prompt medical care including mental 30 health care, food, shelter, and other assistance, if necessary. 31 b. The right to have access to legal assistance and 32 translation services, if necessary. 33 c. The right to receive reasonable police protection if 34 a victim’s safety is at risk or if there is any danger of 35 -9- LSB 5454XS (7) 87 ko/rj 9/ 14

S.F. 2095 additional harm, including measures to protect victims and 1 their family members from intimidation and threats of reprisals 2 from traffickers and their associates and ensuring that the 3 names and identifying information of victims and their family 4 members are not disclosed to the public. 5 2. The departments of human services, human rights, public 6 health, public safety, justice, and other state agencies shall 7 provide the requisite services to assist in the administration 8 of this section. 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill relates to employment of unauthorized aliens and 13 human trafficking and related offenses and provides penalties. 14 New Code section 73A.22 is created to prohibit state 15 entities from awarding a contract or providing developmental 16 assistance to a person who violates the provisions of the bill 17 concerning the employment of unauthorized aliens as established 18 in new Code section 91F.2. The bill defines “developmental 19 assistance” as any form of public assistance, including tax 20 incentives, grants, or other subsidies. The bill provides that 21 a person violating this new provision shall have their contract 22 or developmental assistance terminated. The bill grants state 23 entities the right to enforce their rights in district court 24 and provides that a person violating this provision shall be 25 prohibited from receiving a state contract or developmental 26 assistance for five years. 27 The bill creates new Code chapter 91F prohibiting employers 28 from employing unauthorized aliens. The bill defines 29 “unauthorized alien” as any person who is not a citizen or 30 legal resident and who has not been lawfully admitted to the 31 United States for permanent residence or who is not authorized 32 to work in the United States. An “employer” is any person who 33 employs for wages, paid on an hourly basis, one or more natural 34 persons. The bill prohibits employers from knowingly employing 35 -10- LSB 5454XS (7) 87 ko/rj 10/ 14

S.F. 2095 an unauthorized alien. The bill provides that a violation can 1 occur in cases in which an employer actually knows a person 2 is an unauthorized alien as well as a situation in which any 3 person exercising reasonable care should know from facts and 4 circumstances that a person is an unauthorized alien. The 5 bill provides that a violation of this Code chapter is subject 6 to a civil penalty of $1,000 and a corporate officer of an 7 employer who, through repeated violations of the Code chapter, 8 demonstrates a pattern of employing unauthorized aliens, 9 commits a serious misdemeanor. An employer who demonstrates 10 a pattern of employing unauthorized aliens may be ordered to 11 pay punitive damages. The bill further authorizes the labor 12 commissioner within the department of workforce development to 13 adopt rules to administer and enforce this new Code chapter and 14 grants the commissioner the authority to investigate employer 15 records and to interview employees. The bill provides that the 16 commissioner shall forward any suspected violations of this 17 Code chapter to the attorney general for prosecution. The 18 bill further provides that an employer shall not discharge 19 an employee from or take or fail to take action regarding an 20 employee’s appointment or proposed appointment, promotion or 21 proposed promotion, or regarding any advantage of an employee 22 as a reprisal for a failure by that employee to inform the 23 employer that the employee made a disclosure of information to 24 any law enforcement agency if the employee reasonably believes 25 the information evidences a violation of Code section 91F.2, 26 710A.2, 710A.2A, 710A.2B, 710A.2C, or 710A.2D. An employer 27 who violates the provisions of this Code chapter is liable 28 to an aggrieved employee for affirmative relief including 29 reinstatement, with or without back pay, or any other equitable 30 relief the court deems appropriate, including attorney fees and 31 costs. In addition, an action for injunctive relief may be 32 brought by an aggrieved employee or the attorney general. 33 The bill provides that a person who knowingly subjects, 34 attempts to subject, or engages in a conspiracy to subject 35 -11- LSB 5454XS (7) 87 ko/rj 11/ 14

S.F. 2095 another person to forced labor or services by causing or 1 threatening to cause serious physical injury to that person, by 2 physically restraining or threatening to physically restrain 3 another person, by abusing or threatening to abuse the law 4 or legal process, or by destroying, concealing, removing, 5 confiscating, or possessing any actual or purported passport or 6 other immigration document, or any other actual or purported 7 government identification document, of another person is guilty 8 of the crime of forced labor and services and is subject to a 9 class “B” felony, a class “C” felony, or a class “D” felony, 10 depending upon the circumstances of the offense. A class “B” 11 felony is punishable by confinement for no more than 25 years, 12 a class “C” felony is punishable by confinement for no more 13 than 10 years and a fine of at least $1,000 but not more than 14 $10,000, and a class “D” felony is punishable by confinement 15 for no more than five years and a fine of at least $750 but not 16 more than $7,500. The bill provides sentencing enhancements 17 for a crime involving a minor victim, depending on the 18 circumstances of the offense, ranging from a class “A” felony, 19 punishable by confinement for life without the possibility of 20 parole, to a class “C” felony. 21 The bill provides that a person who knowingly recruits, 22 entices, harbors, transports, provides, or obtains by any 23 means, or attempts to recruit, entice, harbor, transport, 24 provide, or obtain by any means, another person, with the 25 intent that the person be subjected to forced labor or 26 services, or a person who knowingly benefits, financially or by 27 receiving anything of value, from participation in a venture 28 that involves forced labor or services, is guilty of a class 29 “B” felony, except if the person being trafficked is a minor, a 30 person who commits either act is guilty of a class “A” felony. 31 The bill further provides that a person who knowingly 32 recruits, entices, harbors, transports, provides, or obtains by 33 any means, or attempts to recruit, entice, harbor, transport, 34 provide, or obtain by any means, a minor, with the intent that 35 -12- LSB 5454XS (7) 87 ko/rj 12/ 14

S.F. 2095 the minor be subjected to sexual exploitation in violation of 1 Code section 728.12, Iowa’s sexual exploitation of a minor 2 statute, or a person who knowingly benefits, financially or by 3 receiving anything of value, from participation in a venture 4 that involves a violation of Code section 728.12, is guilty of 5 a class “A” felony. 6 The bill provides sentencing enhancements for the crimes 7 of forced labor and services and human trafficking in forced 8 labor and services. The bill provides that if the commission 9 of any such offense results in the death of the person or if 10 the person is kidnapped, the defendant is guilty of a class “A” 11 felony. 12 The bill provides that if a corporation is convicted of 13 the crimes of forced labor and services, human trafficking 14 in forced labor and services, or human trafficking in the 15 sexual exploitation of a minor, the court shall order the 16 corporation’s dissolution or reorganization; order the 17 suspension or revocation of any license, permit, or prior 18 approval granted by a state agency in Iowa; or order the 19 surrender of the corporation’s charter if organized under state 20 law or revocation of the foreign corporation’s certificate to 21 conduct business in the state. 22 The bill provides that a victim under the bill shall receive 23 restitution pursuant to Code chapter 910 for damages resulting 24 directly from a violation, and the restitution shall include 25 a fine of the greater of either the gross income or value of 26 the victim’s labor or services, or the value of the victim’s 27 wages of not less than the current minimum wage under the 28 federal Fair Labor Standards Act or under the Iowa minimum wage 29 pursuant to Code section 91D.1. 30 The bill provides that in addition to other victim rights 31 provided in Code chapter 915, including the right to receive 32 victim compensation pursuant to Code section 915.84 and the 33 right to exert victim counseling privileges pursuant to Code 34 section 915.20A, victims shall have the right to receive prompt 35 -13- LSB 5454XS (7) 87 ko/rj 13/ 14

S.F. 2095 medical care including mental health care, food, shelter, and 1 other assistance; the right to have access to legal assistance 2 and translation services; and the right to receive reasonable 3 police protection; and including ensuring that the names and 4 identifying information of victims and their family members are 5 not disclosed to the public if a victim’s safety is at risk or 6 if there is any danger of additional harm, without regard to 7 their immigration status. 8 The bill authorizes the attorney general to appoint a 9 special assistant attorney general who shall, under the 10 direction of the attorney general, investigate and prosecute 11 all claims relating to the crime of human trafficking and 12 related offenses and the employment of unauthorized aliens and 13 appropriates up to $100,000 from the state general fund to the 14 department of justice for the fiscal year beginning July 1, 15 2018, and ending June 30, 2019, to be used by the department of 16 justice for such purposes. Notwithstanding Code section 8.33, 17 appropriated moneys that remain unencumbered or unobligated at 18 the close of the fiscal year do not revert but remain available 19 for expenditure for the purposes designated until the close of 20 the succeeding fiscal year. 21 -14- LSB 5454XS (7) 87 ko/rj 14/ 14